If the selling price per unit of a product is $30,variable costs per unit are $20,and total fixed costs are $10 000 and a company sells 5000 units,operating profit would be $40 000.

Question

Quizplus · Accepted Answer

To calculate operating profit, we need to use the formula:
Operating profit = (Selling price per unit - Variable cost per unit) x Number of units - Total fixed costs

Using the given values, we can plug them into the formula:

Operating profit = (30 - 20) x 5000 - 10000
Operating profit = 10 x 5000 - 10000
Operating profit = 40000

Therefore, the statement is True, operating profit would be $40 000.

If the Selling Price Per Unit of a Product Is